The capsaicin alkaloid is the secondary metabolite present in the fruits of Capsicum annum, which belongs to the family Solanaceae. Capsaicin and dihydrocapsaicin constitute 50% of the capsaicinoids in Capsicum annum. The present article describes methods for extracting Capsaicin, like soxhlation, microwave-assisted extraction(MAE), ultrasonication, and supercritical fluid extraction. Also, different analytical methods for estimating Capsaicin are specified, including spectroscopic and chromatographic methods and hyphenated techniques, and the best approach is described. Microwave-assisted extraction of Capsaicin at a temperature of 120ºC and the solid-liquid ratio of 25mg/mL for 90 min yields 3.85% of Capsaicin, the most suitable and easy method for extracting Capsaicin. The best way for estimating Capsaicin is to use a GC-MS method with EI ionization at 70 eV and a column of 5% diphenyl, 95% dimethylpolysiloxane, 30 m x 0.25 mm, using helium as the mobile phase at a flow rate of 1.61 mL/min at a column temperature of 60ºC and injector temperature of 250ºC. Capsaicin has many pharmacological effects like anti-cancer, antidiabetic, antioxidant, antimicrobial, etc., which are also discussed in this article.